Public or Livery Conveyance Exclusion Under the PAP

Insured's son is using Mom's car with permission to deliver Pizza's. He also states he is part owner. He has been delivering pizza's for about 2 months when he suddenly hits a raccoon. Is this excluded? Or Is there coverage under standard auto policy? 

Iowa Subscriber

The exclusion you're concerned about is the exclusion of loss that occurs while the vehicle is being used as a public or livery conveyance. This exclusion causes a tremendous amount of confusion. The intent of the exclusion is to avoid granting coverage when the insured offers the use of his vehicle to the public at random for a fee for transportation or delivery. For example, the insured puts a sign in his yard stating that he'll deliver goods or transport people for $20 a trip. This is using the vehicle as a public or livery conveyance. The insured is holding the vehicle out to hire to the general public for a fee.

In the job of delivering pizzas, the insured is not making his vehicle available to the general public for the purpose of receiving goods. Even though the pizza company may add a fee to the price of the pizza, this does not go to the driver for the use of the vehicle. The driver is paid a wage for the act of delivering the pizza or performing other duties, not for the use of the vehicle.

In your situation, there is coverage for the damage to the vehicle caused by the contact with the raccoon.

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